Washington: The US said it will maintain financial aid to the Palestinian Authority even under a new government backed by the Islamic Hamas movement, earning a rebuke from Israel.

Secretary of State John Kerry called Israeli Prime Minister Benjamin Netanyahu on Monday to discuss continuing US support for the Palestinian Authority, according to State Department spokeswoman Jen Psaki.

The Israeli government later issued a statement saying it is "deeply disappointed" by US comments about working with the new government, formed after an agreement between Hamas, regarded by the US and Israel as a terrorist group, and the rival Palestine Liberation Organisation. American aid for the Palestinians is budgeted at $US440 million this year.

Palestinian President Mahmoud Abbas waves during a swearing-in ceremony of the unity government, in the West Bank city of Ramallah. Photo: Reuters

Palestinian President Mahmoud Abbas oversaw the swearing-in of 17 ministers on Monday in a ceremony in his West Bank headquarters in Ramallah. Mr Abbas has said the new technocratic government, which doesn't include any official Hamas members, will support conditions laid down by international mediators, which include honouring past agreements with Israel, renouncing violence and recognising Israel.

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"Based on what we know now, we intend to work with this government, but will be watching closely to make sure it upholds the principles that President Abbas reiterated today," Ms Psaki said.

Congress bars US aid to any Palestinian government "effectively controlled" by Hamas, as well as to any power-sharing arrangement that includes Hamas members or that results from an agreement through which Hamas "exercises undue influence." The US president has authority to waive that provision if deemed to be the national interest.

Majority Leader Eric Cantor called for the suspension of US aid so the Obama administration and Congress can determine whether "this so-called technocratic government" is free of influence of Hamas.

"President Abbas argues that the new government is composed of ministers without political affiliation, but this new government appears dependent upon Hamas and Hamas continues to support terrorism in its quest to destroy the state of Israel," Mr Cantor said in a statement. The "burden lies on this new unity government" to show it rejects terrorism, is "truly independent of Hamas," and recognises Israel's right to exist as a Jewish state, said Mr Cantor, a Virginia Republican.

Jonathan Schanzer, vice president of research at the Foundation for Defence of Democracies in Washington, said Mr Abbas appears to have "threaded the needle on this" by structuring the unity government in a way that doesn't cross the US line.

"You can see the fingerprints of the [Obama] administration, quite frankly," he said in a briefing for reporters. "I've heard from several people in the region that they believe that the administration worked quietly behind the scenes to make sure that you didn't see a cutoff."

Israel has warned it will withhold at least some of the $US1.2 billion it collects annually for the Palestinians in customs tariffs and other payments.

The Israeli government statement made no effort to disguise a rift with the Obama administration.

"If the US administration wants to advance peace, it should be calling on Abbas to end his pact with Hamas and return to peace talks with Israel," it said.